TAP & Brothers Third-Quarter Budget Data Credit Sales Credit Purchases Wages, Taxes, and Expenses Interest Equipment Purchases July 251,823 97,509 26,227 7,133 54,264 August 261,880 287,790 111,009 31,262 7,653 September 61,225 134,834 33,240 7,902 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. • In June, credit sales were $138,299, and credit purchases were $102,236 • July's beginning cash is $184,861 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations)
TAP & Brothers Third-Quarter Budget Data Credit Sales Credit Purchases Wages, Taxes, and Expenses Interest Equipment Purchases July 251,823 97,509 26,227 7,133 54,264 August 261,880 287,790 111,009 31,262 7,653 September 61,225 134,834 33,240 7,902 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. • In June, credit sales were $138,299, and credit purchases were $102,236 • July's beginning cash is $184,861 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:TAP & Brothers Third-Quarter Budget Data
Credit Sales
Credit
Purchases
Wages, Taxes,
and Expenses
Interest
Equipment
Purchases
July
●
251,823 261,880
97,509
26,227
7,133
August September
54,264
111,009
31,262
7,653
61,225
287,790
134,834
33,240
7,902
O
The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be
collected in the month of the sale, and the remaining 66% will be collected in the following month.
Credit purchases will be paid in the month following the purchase.
• In June, credit sales were $138,299, and credit purchases were $102,236
July's beginning cash is $184,861
If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against
uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e.,
end of September)? (Answer surplus as a positive number or deficit as a negative number. Round
answer to 0 decimal places. Do not round intermediate calculations)
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